The CEO of Pantera Capital, Dan Morehead, has shared a brief analysis of the effects of EIP1559 on the market value of Ethereum. According to Mr. Morehead, the implementation of the Ethereum Improvement Proposal will make ETH more deflationary than Bitcoin. He also pointed out that the market is currently re-rating Ethereum for the EIP implementation and staking. He explained:
We think this is the beginning of the market re-rating Ethereum for EIP 1559 & Proof of Stake. A deflationary asset – where each block, negative Ethereum are issued. This means ETH will be a more deflationary asset than bitcoin.
The Ratio of Ethereum’s Market Cap to bitcoin Has Doubled in the Last Year
In addition, Ethereum’s success in the crypto markets has resulted in the ratio between its market cap and Bitcoin’s, doubling in the last year as visualized through the following chart.